In a concerning trend, offshore gambling operators are leveraging the prestige of the Australian Open to promote illegal services, sparking urgent calls for comprehensive bans on unlicensed websites. This exploitation has raised alarms among Australian regulators and sporting professionals, who highlight the risks to consumers unprotected by local laws.
Rising Concerns Over Offshore Gambling
Australian authorities have expressed growing worry about the proliferation of offshore sites, where gamblers lack the safeguards of Australian consumer law and face uncertainties in withdrawing winnings. One notable example is Vegastars, an unlicensed e-casino that offered a giveaway of front-row tickets to a night session at Rod Laver Arena and a $500 flight voucher, using the Australian Open logo without affiliation.
Social Media Promotions and Consumer Mislead
Vegastars' promotional post attracted comments from 2,500 accounts, including Australian Instagram users, despite the tournament's disassociation. At least three other unlicensed sites have similarly used the championship's logo and images of tennis stars in social media campaigns, with an additional 10 advertising Australian Open-themed promotions online.
Kai Cantwell, chief executive of Responsible Wagering Australia (RWA), which represents major local operators like Sportsbet and Bet365, warned that such branding and giveaways could mislead consumers into believing offshore platforms are legal. "The fact this is happening openly during Australia's biggest sporting events shows how far enforcement is lagging behind the reality of offshore gambling," Cantwell stated.
Regulatory Actions and Investigations
The Australian Communications and Media Authority (Acma) has the power to request internet service providers block access to unlicensed gambling sites. An Acma spokesperson confirmed that Vegastars has been identified as illegal and will be targeted for blocking, with investigations into other companies flagged by Guardian Australia.
Vegastars' website includes a disclaimer placing responsibility on players to abide by their country's laws, yet this has not deterred promotions. Another operator, Rainbet, featured in an Instagram video by Australian influencer Jon Redman, promoting live in-play betting to over 40,000 views. Acma has warned influencers against such promotions and is investigating Redman's conduct, having contacted Meta Platforms about the video, which was removed after Guardian Australia's inquiry.
Challenges in Enforcement and Proposed Solutions
Despite Acma's efforts, which have blocked 220 illegal services across 1,455 sites since November 2019, consumer advocate Lauren Levin argues for a more effective approach. She suggests implementing a payment block system, similar to those in Germany and Norway, to prevent transactions with unlicensed providers. "It works better than the current whack-a-mole approach where Acma blocks an overseas URL and five minutes later the business has just changed the URL to a slightly different one," Levin explained.
Levin also notes that addressing offshore gambling could allow the government to focus on the dominant local industry, which accounts for the majority of gambling losses. According to Queensland Treasury estimates, Australians gambled $254 billion in 2023-24, with a net loss of $32 billion. RWA-commissioned research in November estimated nearly $3.9 billion was gambled through offshore companies in 2024, compared to $7 billion locally.
Broader Implications for Consumer Protection
This situation underscores the vulnerabilities in current regulatory frameworks, as offshore operators exploit legal loopholes and social media platforms to target Australian consumers. With influencers like Redman promoting these services, there is a pressing need for stricter enforcement and public awareness campaigns to protect gamblers from unregulated risks.
As the Australian Open continues to be a focal point for such illegal promotions, stakeholders are urging swift action to safeguard the integrity of sports and consumer rights in the gambling sector.
